A frugal woman has opened up about how she has managed to save £77,000 (stock image) (Image: Milan Markovic via Getty Images)
As soon as payday arrives, it may feel like your hard-earned cash quickly evaporates on costly bills, household necessities, food, and social activities, especially with the cost of living being higher than it has been in a long time.
However, one money-savvy woman has revealed how she’s managed to save an impressive £77,000, while owning three properties on a £42,000 salary.
Charlie Louise, who prides herself on her frugality, is on a quest to save as much as possible so she can retire by the age of 40. The 27-year-old has set herself a daily saving goal of £27, which adds up to £10,000 annually.
“When I hit a new £1,000 I think how can I make my next £1,000 faster,” she divulged in a recent TikTok video.
Charlie swapped her beloved three-bedroom home in a desirable area for a budget-friendly fixer-upper. Now, she owns three properties, all purchased before she turned 25, and boosts her income by renting them out.
READ MORE: Fake job offers warning issued as people risk unknowingly becoming money mules
She explained: “People often say ‘you’re on a 42,000 salary and that’s the house that you’ve got. The way I see it is that I could have one big house rather than three little houses, but that one big house wouldn’t be really making me any money because I’d be living in it.”
Charlie, who insists she will never splurge on luxury items just to impress others, has shared her strategies for maintaining her substantial savings and staying on track with her financial objectives.
In September alone, she earned £2599 from her full-time job and an additional £1,050 from her rental properties. She raked in £10,000 in just one month through her various side hustles.
Her earnings breakdown included £550 from a brand partnership, £690 from digital products, £170 for market research, plus £476 from TikTok Creator Rewards Programme, £68.07 from mystery shopping, £52.57 from TikTok shop, and £25 from website testing.
Beyond this impressive income stream, she’s discovered clever methods to slash her outgoings.
1. Steering clear of dining out and takeaways
Charlie reveals that restaurant meals are exceptionally rare for her.
She maintains that enjoying a meal out should be reserved exclusively for special occasions and socialising. She explained: “Takeaways are a very rare occasion! Max three times a year and not just because it’s the weekend.”
Moreover, when she does venture out for food, she’s likely to opt for budget-friendly choices or hunt down excellent deals.
2. Investing
Charlie also champions putting her savings into a stocks and shares ISA in an effort to multiply her money.
She’s currently 25% of the way towards her £100,000 target.
3. Making the most of hours after work
Charlie emphasises that maximising your time effectively is absolutely crucial if you want to generate additional income, invest or devise strategies to reduce spending.
The financially-savvy woman dedicates her time away from her full-time position to activities such as mystery shopping, market research and product testing. Although this can be labour-intensive, it can create a substantial impact.
She declared: “My 20s are for making my money so that I have more freedom in my 30s and can barista style retire by 40.”
4. Living beneath her means
Charlie revealed that she allocates herself £200 a month for non-essentials.
She also avoids buying anything on finance and only uses her credit card to earn rewards, “not because I can’t buy something outright”, she clarified.
The frugal woman is strict when it comes to her budgeting plans, refusing to exceed her budget just to please others. “I say no to going out with friends if it would take me over my £200 monthly fun budget,” she stated.
“Living below my means is not just saving money but making more money,” she further added.
5. Budgeting
Every month, Charlie meticulously plans out her budget. “I allocate amounts to my sinking funds, I buy gifts and cards for everything where I can earn cashback to overpay my mortgage.”
She also advocates a method known as the ostrich effect. She explained: “People tend to avoid budgeting because they know they have overspent. I don’t bury my head in the sand regardless of whether it’s good or bad because ignoring a problem will most likely compound and worsen the problem.”